September is Life Insurance Awareness Month. In honor of it, we thought we would examine why it’s important to have life insurance. Regardless of who you are or where you are in life, life insurance is an important component of planning for your future. It not only helps you to grow your wealth but also to protect it and the people whom you cherish.
How can life insurance grow your wealth?
If you are a business owner and have life insurance, it can strengthen your business’ credit and provide funds for emergency needs. If you have a personal life insurance policy, it provides similar benefits. It gives you access not only to an emergency fund but also to capital that can be used to pay off a mortgage early, to pay for a family member’s college education, or to supplement your retirement income.
How can life insurance protect your wealth?
As a business owner, life insurance protects your business and the time and effort you have put into growing and building it. If you were to pass away, your business life insurance policy would protect your business’ capital and, possibly, its personnel structure. Many business life insurance policies also can help you to plan for retirement.
Personal life insurance policies also can protect the wealth you have accrued over the years. With the right policy, you can transfer assets to yourself or your family without the worry of incurring taxes on those assets. A life insurance policy also can supplement your retirement income, meaning that you won’t have to rob yourself in order to live comfortably during your retirement years.
How do you choose the right life insurance policy?
Different types of business and personal life insurance policies exist. Flor & Associates Insurance Agency would love to speak with you about the different policies and to identify which one provides the most benefit to you. Remember that choosing the correct life insurance policy is one of the best ways to plan for and protect your future.